What is a luxury retail experience?

In the stores, we wish to create a luxmosphere. Online, many brands find difficult replicating the luxury experience orchestrated in the store.

Yet, what do you consider a “luxury experience”? Comment and shade lights on an experience created by a luxury brand.

EDHEC Master Class: Travel Retail at Nice Côte d’Azur Airport with Arnaud Lescut

On November 12th, Arnaud Lescut, Travel Retail Manager at Nice Côte d’Azur Airport gave a master class on the future of Travel Retail. Nice Côte d’Azur Airport is the third airport in France for number of travelers, after Paris Charles de Gaulle and Orly.  In 2014, 11.7 million passengers traveled through Nice Airport, 63% being international travelers.

Travel Retail encompasses the commercial activities (duty free and duty paid) conducted in airports, train stations, ferries, and airlines, as well as sales to travelers in high street boutiques and factory outlets. L’Oreal names this business the 6th Continent. It is a business which increases steadily every year by a minimum of 5%. The perspectives for the next 20 years are positive: Forecasts indicate steady growth; also, although the travel retail business is dependent on international travel, it recovered fast from past financial crises and difficult travelling contexts (such as SARS epidemia, swine flu and ash cloud). Fashion, jewelry and watches represent 34% of the travel retail market (in USD), beauty products and fragrances 28%, Wine and Spirit 16%, the rest being Confectionary & Fine Food (8%) and Tobacco (13%).

The strongest Travel Retail channel is the airport channel. Spendings are influenced by improvement in retail space and navigability, offerings targeting key nationalities and point-of-sales marketing by professional retailers and key brands. By May 2016 for terminal 1 and May 2017 for terminal 2, Nice Côte d’Azur airport will have doubled its commercial space. The new positioning strategy promises an “amazing experience” to the traveler, with a Côte d’Azur “sea and sun” twist. Based on Arnaud’s presentation, we know travelers will have a wow effect. Looking forward…

Thank you to Arnaud Lescut, Travel Retail manager, Nice Côte d’Azur Airport for sharing with BBA 4th year students on Travel Retail pespectives.

Edhec at Global Citizen Forum, Monaco 2015

EDHEC students were invited on October 8th and 9th at the Global Citizen Forum in Monaco. Kofi Annan, 7th Secretary-General of the United Nations, was one of the prestigious speakers. Marguerite Hedde (EDHEC 2016, Msc Marketing) had a unique occasion to interact with him and asked the following question: “In 2012, you said about the Syrian crisis that Russia had a better analysis of the situation than the international coalition, as Russia wanted to interfere in order to protect the population rather than bringing the government down (RFI source). According to today’s situation in the Middle East, what role do you believe Russia can play within or outside the western coalition to fight Daesh?”.  Kofi Annan answered back that Russia or any country from the international coalition won’t be able to act efficiently in Syria if they don’t work hand in hand with the countries around Syria (Turkey, Iraq,…). Thus, all the countries should work together in the organization of their actions and understand that it is the only way to overcome Daesh.

Thank you to Long Bernard Hoang, adjunct professor at EDHEC Business School for organizing the trip and coaching the students!

Edhec at Global Citizen Forum in Monaco
Edhec at Global Citizen Forum in Monaco

 

EDHEC Research: Storytelling fosters the dream value of luxury brands

An academic research published in Journal of Business Research this month advances the theory and practice of luxury brand advertising. It is co-authored by Jae-Eun Kim and Stephen Lloyd (AUT University, Auckland, New Zealand) and Marie-Cécile Cervellon (EDHEC Business School, Nice and Lille, France). Luxury clients (n=270) from three countries (France, Korea and Australia) were exposed randomly to global ads from luxury brands.  Through projective techniques, respondents produced narratives which were analyzed with thematic and text analysis. Results indicate that implicit messaging is effective in creating engagement through narrative transportation; however, when the message is explicit and straightforward, it impedes the transportation process and leads to lower engagement across cultures. The authors identify seven dominant themes in the narratives produced by respondents in relation to luxury ads: “1) Status aspirations; 2) Romance, seduction and porn-chic; 3) Involvement with a fantasy world or adventure; 4) Other-directedness; 5) Self-esteem, power and success; 6) Sensory world of beauty, nature, body and feelings; 7) Activation” (Kim, Lloyd and Cervellon, 2015).

“Narrative-transportation storylines in luxury brand advertising: motivating consumer engagement”, Journal of Business Research, 2015 

Download the article (if you are an EDHEC student, you have access through BU Vauban): http://www.sciencedirect.com/science/article/pii/S0148296315003392

Louis Vuitton Island Singapore

On May 5th 2015, EDHEC students enrolled in Msc Global Business (Singapore track) were warmly welcomed by Louis Vuitton ambassadors at Marina Bay Sands. Louis Vuitton Island Singapore is the 12th Louis Vuitton Maison opened in the world and the first in Asia. It offers an immersive experience into Louis Vuitton art of travelling, rooted in Louis Vuitton heritage, with a nautical inspiration. The building, by architect Moshe Safdie, seems floating on the water. The interior design by Peter Marino makes constant references to yachting. Students got a guided tour of the flagship, with detailed explanations on the orchestration of the luxury experience.

Based on the set of pictures shown in class and/or based on documents searched on internet, think about the translation of Louis Vuitton brand identity into the boutique design and layout.

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http://www.marinabaysands.com/shopping/louis-vuitton.html

Many thanks to Sylvie Jean, Director of EDHEC Msc Global Business and to Hendra Zen and Jonathan Jong, Store Managers at Louis Vuitton Singapore, for making this incredible experience possible.